Trendlines : FY 2021 Unaudited Financial Results

THE TRENDLINES GROUP LTD.

(Incorporated in Israel)

(Company Registration No. 513970947)

Condensed Interim Financial Statements

For the Six Months and Full Year Ended 31 December 2021

Background

The Trendlines Group Ltd. (the "Company" or "Trendlines" and, together with its subsidiaries and associated companies, the "Group") was incorporated on 1 May 2007 as a private company limited by shares under the Israeli Companies Law.

The Group is focused on developing technology-based companies in the medical and agrifood fields. The Group creates and develops companies in accordance with the mission to improve the human condition. To this end, the Group discovers, invests in, incubates and provides services to companies in the fields of medical and agricultural technologies with a view toward a successful exit in the marketplace. Exits may include sales such as merger and acquisition transactions, listing on public stock exchanges and other dispositions of the Company's holdings.

The Group also has its own internal innovation centre, Trendlines Innovation Labs (established as a business unit of the Company in 2011), where it engages in research and development activities to create new technologies, either as principal or in collaboration with global and local companies and partners, to address unmet market needs.

Furthermore, Trendlines Innovation Labs' technologies can be sold or licensed to others or transfered to Trendlines' incubators for further development and commercialization.

PART I - Condensed Interim Financial Statements and Selected Notes to the Condensed Interim Financial Statements

1(a)(i) A condensed interim income statement and statement of comprehensive incomes/loss, or a statement of comprehensive income/loss (for the Group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

				Group
		6 months	6 months		12 months 12 months
		ended 31	ended 31		ended 31	ended 31
		December	December		December December
		2021	2020		2021	2020
		(Unaudited)	(Unaudited)	Change	(Unaudited)	(Audited)	Change
		US$'000	US$'000	(%)	US$'000	US$'000	(%)
Income:
Gain / (loss) from change in fair value of
investments in Portfolio Companies, net	2,961	(7,370)	N.M.	9,151	(10,996)	N.M.
Income from services to Portfolio
Companies	777	1,182	(34.26)	1,542	2,981	(48.27)
Income from contracted R&D services	391	521	(24.95)	759	863	(12.05)
Financial income	660	2,246	(70.61)	4,260	3,931	8.37
Other income	239	347	(31.12)	410	372	10.22
Totalincome / (loss)	5,028	(3,074)	N.M.	16,122	(2,849)	N.M.
Expenses
Operating, general and administrative
expenses	6,266	4,564	37.29	11,125	7,937	40.15
Marketing expenses	152	118	28.81	328	214	53.27
R&D expenses, net	806	594	35.69	1,510	1,087	38.91
Financial expenses	(464)	454	N.M.	514	860	(40.23)
Totalexpenses	6,760	5,730	17.97	13,477	10,098	33.46
Income / (loss) before income taxes /
(tax benefit)	(1,732)	(8,804)	(80.32)	2,645	(12,947)	N.M.
tax benefit	3,679	8,961	58.93	3,355	8,996	(62.69)
Net income / ( loss)	1,947	157	1140.12	6,000	(3,951)	N.M.
Other comprehensive loss:
Amounts that will be or that have been
reclassified to profit / loss when specific
conditions are met:
Income / (loss) from cash flow hedges	-	594	N.M.	(45)	220	N.M.
Total comprehensive income / (loss)		1,947	751	159.25	5,955	(3,731)	N.M.

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Net income (loss) attributable to: Equity holders of the Company Non-Controlling Interests

Total comprehensive income / (loss) attributable to:

Equity holders of the Company Non-Controlling Interests

Net income / (loss) per share attributable to equity holders of the Company (U.S. cents):

Basic net income / (loss)

Diluted net income / (loss)

2,193	360	509.16	6,563	(3,734)	N.M.
(246)	(203)	21.18	(563)	(217)	159.45
1,947	157	1140.12	6,000	(3,951)	N.M.

2,193	954	129.87	6,518	(3,514)	N.M.
(246)	(203)	21.18	(563)	(217)	(159.45)
1,947	751	159.25	5,955	(3,731)	N.M.

0.29	0.05	543.33	0.83	(0.47)	N.M.
0.29	0.05	543.33	0.83	(0.47)	N.M.

1(a)(ii) Notes to Condensed Interim Consolidated Statement of Comprehensive income/(loss)

	31 December 2021	31 December 2020
	(Unaudited)	(Audited)
	US$'000	US$'000
Depreciation, amortization and
impairment loss	1,102	1,356
Foreign currency exchange loss	(48)	(647)
N.M. denotes Not Meaningful

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1(b)(i) A condensed interim statement of financial position (for the issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year

	Group		Company
	31 December	31 December 31 December	31 December
	2021	2020	2021	2020
	(Unaudited)	(Audited)	(Unaudited)	(Audited)
	US$'000	US$'000	US$'000	US$'000
Assets
Current assets
Cash and cash equivalents	14,309	10,656	10,894	2,199
Short-term bank deposits	4,252	101	4,149	-
Accounts and other receivables	3,361	2,698	8,301	1,125
Short-term loans to Portfolio
Companies	287	19	225	-
	22,209	13,474	23,569	3,324
Non-current assets
Investment in Subsidiaries	-	-	78,352	82,911
Long-term bank deposits	-	4,127	-	4,127
Accounts and other receivables	5,276	2,696	4,721	-
Contingent consideration receivable	6,599	2,898	6,599	-
Investments in Portfolio Companies	83,046	83,730	-	-
Deferred taxes	-	6,838	-	6,645
Right of use asset	2,752	2,122	-	-
Property, plant and equipment, net	1,201	959	523	130
	98,874	103,370	90,195	93,813
Total assets	121,083	116,844	113,764	97,137
EQUITY AND LIABILITIES
Current liabilities
Lease liability	776	669	-	-
Short-term loan	4,241	-	4,241	-
Trade and other payables	4,246	1,679	2,204	596
Deferred revenues	1,184	616	337	-
	10,447	2,964	6,782	596
Non-current liabilities
Loans from the Israel Innovation
Authority	2,718	2,626	1,434	-
Deferred revenues	679	-	-	-
Lease liability	2,274	2,297	-	-
Deferred taxes	2,156	12,350	2,230
Other long-term liabilities	267	272	232	223
	8,094	17,545	3,896	223

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Total liabilities

18,541

20,509

10,678

819

Equity
Equity Attributable to Equity
Holders of the Company:
Share capital	2,123	2,123	2,123	2,123
Share premium	79,312	79,307	79,312	79,307
Reserve from hedge	-	45	-	45
Reserve from share-based payment
transactions	4,378	4,131	4,378	4,131
Retained earnings	17,273	10,710	17,273	10,710
Equity attributable to owners of
the parent	103,086	96,316	103,086	96,316
Non-controlling interests	(544)	19	-	-
Total equity	102,542	96,335	103,086	96,316
Total equity and liabilities		121,083	116,844	113,764	97,137

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